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Business EthicsBusiness Ethics

UnitUnit II

VVISMVVISMPGDM I SemesterPGDM I Semester

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ConceptConcept

EthicsEthics andand moralsmorals areare distinguisheddistinguished fromfrometiquetteetiquette..

ItIt isis toto dodo withwith customscustoms ratherrather thanthanvaluesvalues..

EthicsEthics maymay bebe regardedregarded asas knowingknowing whatwhatisis right,right, doingdoing whatwhat isis rightright andand feelingfeeling

whatwhat isis rightright.. DoDo whatwhat isis goodgood forfor youyou withwith thethe leastleast

possiblepossible harmharm toto othersothers..

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Ethical DilemmaEthical Dilemma

AnAn elderlyelderly widowwidow wentwent intointo aa supersupermarketmarket forfor purchasespurchases.. TheThe salesmansalesman saidsaid

thatthat thethe billbill forfor allall herher purchasespurchases waswas RsRs..10001000.. TheThe oldold ladylady paidpaid withwith aa newnew RsRs..10001000 billbill.. UnknownUnknown toto herher therethere waswasanotheranother RsRs.. 10001000 notenote stuckstuck toto thethe backback..

WhenWhen thethe salesmansalesman sawsaw whatwhat hadhadhappenedhappened hehe waswas confrontedconfronted withwith ananethicalethical dilemmadilemma:: shouldshould hehe telltell thethe lady?lady?

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Origins and explanationsOrigins and explanations

Physical MattersPhysical Matters GenesGenes Brain Evolution and EthicsBrain Evolution and Ethics DietDiet

Environmental FactorsEnvironmental Factors Psychological theory and ethicsPsychological theory and ethics SociobiologySociobiology The benefits of CoThe benefits of Co--operationoperation (working with others)(working with others) Cross Cultural IssuesCross Cultural Issues

Cross cultural comparisonsCross cultural comparisons Non negotiable positionsNon negotiable positions Touching taboosTouching taboos Forms of addressForms of address

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Physical MattersPhysical Matters

Genes:Genes:Cesare Lombroso, Italian CriminologistCesare Lombroso, Italian Criminologist physiquephysique

Tailor (Baumler)Tailor (Baumler) VariablesVariables1.1. Self rating of suitability for a professionSelf rating of suitability for a profession

2.2. Suitability for occupations requiring physical strengthSuitability for occupations requiring physical strength

3.3. Suitability for sports requiring strengthSuitability for sports requiring strength

4.4. HeightHeight

5.5. WeightWeight6.6. Solidity (weight/height to form a quotient)Solidity (weight/height to form a quotient)

7.7. Hobbies indicative of strengthHobbies indicative of strength

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Physical MattersPhysical Matters

Brain Evolution and EthicsBrain Evolution and Ethics

Diet (iodine)Diet (iodine)

Environmental FactorsEnvironmental Factors

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Origins and explanationsOrigins and explanations

Physical MattersPhysical Matters GenesGenes Brain Evolution and EthicsBrain Evolution and Ethics DietDiet

Environmental FactorsEnvironmental Factors Psychological theory and ethics (Money Game)Psychological theory and ethics (Money Game) SociobiologySociobiology The benefits of CoThe benefits of Co--operationoperation (working with others)(working with others) Cross Cultural IssuesCross Cultural Issues

Cross cultural comparisonsCross cultural comparisons Non negotiable positionsNon negotiable positions Touching taboosTouching taboos Forms of addressForms of address

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OtherOther

Culture and EthicsCulture and Ethics

Personality and EthicsPersonality and Ethics

LeadershipLeadership

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Identifying Ethical IssuesIdentifying Ethical Issues

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Ethical DilemmaEthical Dilemma

AnAn inin thethe serviceservice employeeemployee ofof thethe industryindustry isis oftenoften calledcalledonon toto workwork late,late, oftenoften withoutwithout noticenotice.. SheShe complainscomplains totoherher supervisorsupervisor aboutabout thethe lacklack ofof consultation,consultation, thetheimplicationsimplications forfor herher socialsocial lifelife andand thethe oftenoften shortshort noticenotice

givengiven..TheThe supervisorsupervisor tellstells herher thatthat ifif sheshe doesdoes notnot likelike thethe jobjobsheshe cancan looklook elsewhereelsewhere forfor employmentemployment.. ToTo thisthis thetheemployeeemployee tellstells thethe supervisorsupervisor thatthat sheshe intendsintends toto reportreporthimhim toto managementmanagement forfor suggestingsuggesting insubordinationinsubordination..

AtAt thisthis point,point, youyou areare calledcalled inin toto advise,advise, toto identifyidentify thetheissuesissues andand toto proposepropose constructiveconstructive solutionssolutions..

what would you advise?what would you advise?

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Identify Ethical IssuesIdentify Ethical Issues

Preventing Ethical ProblemsPreventing Ethical Problems

Being Ethical in an Unethical EnvironmentBeing Ethical in an Unethical Environment

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Confronting Ethical DilemmasConfronting Ethical Dilemmas

Facts in the caseFacts in the case

Invoking the codeInvoking the code

AvoidingAvoiding aggressiveaggressive reactionsreactions andandsolutionssolutions

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Ethical DilemmaEthical Dilemma

TheThe companycompany ofof whichwhich youyou areare thethe HeadHead ofofcustomercustomer relations,relations, hashas receivedreceived complaintscomplaintsfromfrom thethe publicpublic thatthat oneone ofof youryour productsproducts doesdoes

notnot workwork properlyproperly.. TheyThey wantwant theirtheir moneymoney back,back,butbut youryour policypolicy isis toto replacereplace thethe faultyfaulty goodsgoods..TheThe customercustomer complainscomplains thatthat theythey nono longerlongertrusttrust youryour companycompany products,products, butbut youryour policypolicy isisdesigneddesigned toto maximizemaximize profitprofit.. ReplacementReplacement isischeapercheaper andand easiereasier thanthan refundingrefunding..

HowHow doesdoes oneone balancebalance thethe customercustomer wisheswishesagainstagainst thethe commercialcommercial imperatives?imperatives?

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Approaches to dilemmaApproaches to dilemma

identification and

resolutionidentificati

on and

resolution

Disposition of Cases: Applying SanctionsDisposition of Cases: Applying Sanctions

Guidance on ethical breaches: The ombudsmanGuidance on ethical breaches: The ombudsman

Some creative ideasSome creative ideas

ApologiesApologies Improvement rather than perfectionImprovement rather than perfection

Discriminant AnalysisDiscriminant Analysis

Promptness of dealingPromptness of dealing

Procedural principlesProcedural principles

The decision TressThe decision Tress The sequence of questionsThe sequence of questions

The two quick testsThe two quick tests